THE 500-strong workforce of Borden wallpaper manufactueres in Lancaster is set to enter a new era after the company was taken over by a New York merchant bank. The transfer of Borden Decorative Products, historically known as Storeys, to American bankers, the Blackstone Group, is expected to be completed by early next year. Borden Decorative Products' chief executive Neil Shorrock reassured employees last week that the deal will have "little or no effect on the staffing situation."

The takeover comes after months of speculation about the future of the company. which has a worldwide business of annual sales totalling $375 million.

Borden, traditionally known as Storeys, has had roots in Lancaster for more than a century. The company, which has headquarters in Darwen, East Lancashire, is expected to retain an 11 per cent stake in Blackstone's new wallcovering operation. They will work with an Ohio-based Imperial Wallcoverings, owned by Collins and Aikman Corporation which has also been assimliated by the New York investment bank.

Mr Horrocks explained: "We see the deal as a good opportunity. We have a good track record in this country - as our recent awards shows - and we look forward to having access to Imperial Wallcoverings' designs. It will make us a tremendous market force on a worldwide scale."

The money Borden bosses make from the deal is expected to be ploughed into other business ventures.

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